EIB Lends €300 Million to novobanco for Financing SMEs & MidCaps and Climate Action
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The European Investment Bank (EIB) has granted a €300 million loan to novobanco to facilitate the financing of projects undertaken by SMEs (firms with up to 250 employees), MidCaps (firms with up to 3,000 employees) and Public Sector Entities (PSEs). The loan agreement was signed in Lisbon.
The EIB loan will help address the working capital, liquidity needs and investment constraints of SMEs, MidCaps and PSEs, currently facing an energy crisis, soaring inflation and rising interest rates, which could severely set back the emerging post-pandemic economic recovery in Portugal.
This credit line will support the financing of investment projects costing up to €25 million in the case of SMEs and MidCaps, mainly operating in Portugal.
See related article: EIB Group to Assist Greece’s Sustainable and Energy Efficiency Infrastructure Projects
A sizeable component of this operation (30%) will be dedicated to finance green investments, mainly in the areas of smart transportation, as well as other EU taxonomy aligned initiatives in the renewable energy, sustainable agriculture and manufacturing sectors. Additionally, a significant portion of the on-lending of novobanco to final beneficiaries will benefit Cohesion Regions, affirming the EIB’s commitment to the convergence of living standards and the reduction of , regional disparities.
With this new loan, novobanco will reach a total of €1.93 million in EIB credit lines extended to the Portuguese Economy.
These funding instruments are particularly important to novobanco as they allow the Portuguese SMEs and MidCaps to gain access to more favorable loan terms and to additional green investments financing sources.
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